AMC unloads Cinemex to Larrea

Exhibitor sells film operator for $315 million

Exhib AMC’s plans to sell Mexican operator Cinemex for an estimated $315 million to billionaire German Larrea have been given the greenlight by Mexico’s competition commission (CFC).

Sale was first announced following Kansas City-based AMC’s SEC filing on Nov. 7.

Larrea will likely merge Cinemex’s 44 multiplexes (493 screens) into his own MMCinemas loop, which has 87 plexes (more than 900 screens), making it a formidable contender to national leader Cinepolis.

Mexico’s third-richest man, according to Forbes, Larrea purchased MMCinemas in February through holding company Entretenimiento GM de Mexico. Together, MMCinemas and Cinemex look to pin down more than a 30% market share compared to Cinepolis’ 49.5%.

Although the CFC decision means the deal will close speedily, the pricetag may still fluctuate due to potential peso devaluation and the payment of an estimated $77.5 million in debt, which will be fixed depending on Cinemex’s final cash holdings at the close of the sale.